A report on the tenders for school and local bus services was presented to the Environment, Enterprise & Transportation Committee today.

Members agreed to award the bus contracts, predominantly in south Fife, for all school and subsidised local bus services whilst undertaking a detailed policy and budget review of school and bus services to be completed by October 2011.

Dr Bob McLellan, head of Transportation Services said: “This has been a particularly difficult decision for the Committee in the current economic climate during massive budget constraints in that to deliver the same level of provision throughout Fife would see a 74% increase in expenditure over the next five years. This is not sustainable and it is necessary that we investigate what action can be taken to mitigate the shortfall in budgets.”

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He added: “A significant 35% increase in the tender prices for school and subsidised bus services received are as a direct result of rising fuel costs and also the reductions in levels of support to bus operators across Scotland.

“In light of these increases, we will be undertaking a review of school and local bus services in full consultation with the public on the costs and benefits of these services to be completed by October 2011.”

(GK/KMcA)